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Personal Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's
Personal Electronix sells computer tablets and MP3 players. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's activity are presented below. Tablet Division MP3 Player Division Total Sales $600,000 $400,000 $1,000,000 Variable costs 420,000 260,000 680,000 Contribution margin $180,000 $140,000 320,000 Fixed costs 120,000 Net income $200,000 Determine sales mix percentage and contribution margin ratio for each division. Tablet division MP3 Player division Sales Mix Percentage % % Tablet division MP3 Player division eTextbook and Media Contribution Margin Ratio % % Calculate the company's weighted-average contribution margin ratio. (Round computations and final answer to 2 decimal places, e.g. 15.26%) Weighted-average contribution margin ratio eTextbook and Media % Calculate the company's break-even point in dollars. (Round computations to 2 decimal places and final answer to 0 decimal places, eg 1,526.) Break-even point $ eTextbook and Media Determine the sales level in dollars for each division at the break-even point. (Round computations to 2 decimal places and final answers to O decimal places, e.g. 1.526.) Tablet division $ MP3 Player division $ eTextbook and Media Break-even point
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